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Explain the rationale and the market gap for a specific entrepreneurial idea using relevant tools and techniques to support your choice


Choice: Aravind Hospital


Entrepreneurship is a type of activity that setting up the business to earn profit or specific purpose while also taking the risk to exchange for the result. Entrepreneurship can create and improve the value of the item by process the material to become goods or combine the action to become services and to sell it to the customer. This may include the designing of the product, marketing, financial, operation, and so on. For example, the Aravind eye hospital was a social entrepreneur which means that Aravind is more focused on helping the poorer customer and solve the problem of the cataract which is already raging in India.

 

However, it was not that easy to become a successful entrepreneur, the opportunity is also an important element which may always be found in the market gap. Aravind is an entrepreneur that concentrates on the ophthalmology field. Based on the investigation on the Aravind eye hospital, it can be known that Aravind is more focused on the low level and middle level of the income. This meant that Aravind was weaker in providing the service and equipment which turned toward high-income high-quality customers.

 

In the field of ophthalmology, there is also a market gap between the big companies and small companies. Most of the big companies are focused and motivated by the huge amount of the profit, this makes the big companies always wanting to expand the business to other areas, but there are not able to constantly provide the same quality of the services. This has become a gap and make some of the emerging company are trying to engage in this gap and provide high-quality service but there are not able to support the sales and marketing strategy. This situation happens because emerging companies don’t have many assets but more flexible, the huge company have many assets but there are not enough flexible.

 

By using the swot analysis, the strength of Aravind will be a good reputation because of the charity activity which is the providing of  free treatment and make them are popular and most of the low and middle-level income of people is familiar with it. Other than that, because of the use of the Aurolab, it makes Aravind eye hospital operation cost was also low. However, Aravind was weaker on the welfare of employees such as the motivation and the salary. This will possibly increase the turnover rate of the employee. Moreover, the opportunities of the Aravind eye hospital was the amount of the cataract problem that happen in India. Based on data from the internet, it was about 20 million of people in Indian are facing eye problems yearly. This is also the chance to increase sales. There are also many threats, there are still many of the competitors in the ophthalmology field which may divide the market share and customer sources especially in the high-income high quality of the service that Aravind eye hospital is relatively weak. This has caused the customer inflow of the Aravind is unstable and may bring the greatest influence on the profit and operation of the Aravind. Other than that, Aravind is a family business, which means that they are less receiving talent from an outsider and hold an important position in the company. This may cause a big problem such as talent shortage if the family member is not enough outstanding to hold the business.



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